Do you think you could start a small 12,000 square foot clothing or craft store for $600,000?

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I don't think 12,000SF is small.
Chipotles are usually 2,500SF so you are looking at a store almost 5X of Chipotle.
No, I don't think you can open a store 12,000SF for $600,000... unless the store is almost empty of merchandise.

Fairly easily, as long as you "do your homework" and plan it out properly.... invest in books such as "starting a business all-in-one for dummies" + research where you can get the stock from at a price you can easily flip for profit + also researching locations to find the right spot to sell from. https://amzn.to/2MQGq6y
Then there's also "branding" + "marketing" (advertising) to deal with these days as well.

Also you probably might want to look up how to sell through Ebay + "Amazon FBA" on the side, as most retailers in the clothing / craft niche these days find they make more sales & profit through those channels than they ever do through the store.... and maybe also consider selling through Etsy with the craft stuff.... see books such as:
"Three Weeks to Ebay Profits" (Skip McGrath) + "Etsy Empire", among others.... there's a whole shedload of books like that if you poke around in Amazon's Kindle Ebooks store that'll teach you more about setting up a business + selling things through a store + an Ebay account + an Amazon FBA account + Etsy than you'll ever learn simply asking on here. https://amzn.to/2MCSMCi